Smith v. Arrow Drilling Co.

1942 OK 337, 130 P.2d 95, 191 Okla. 381, 1942 Okla. LEXIS 225
CourtSupreme Court of Oklahoma
DecidedOctober 6, 1942
DocketNo. 30543.
StatusPublished
Cited by7 cases

This text of 1942 OK 337 (Smith v. Arrow Drilling Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Arrow Drilling Co., 1942 OK 337, 130 P.2d 95, 191 Okla. 381, 1942 Okla. LEXIS 225 (Okla. 1942).

Opinion

GIBSON, J.

This action was commenced in district court by defendants in error against plaintiffs in error to recover a certain sum allegedly due under a written contract for the drilling of an oil and gas well. Defendants below filed their answer and cross-petition charging that the well after completion as a producer was destroyed as *382 a result of plaintiffs’ negligence, and sought judgment as on counterclaim for the resulting damages. Judgment was rendered on the verdict for plaintiffs, and defendants appeal.

Defendants were the owners of an oil and gas leasehold on which was located a well of a depth of approximately 2,000 feet. They entered into a written contract with plaintiffs wherein the latter agreed, in consideration of an assignment of one-half interest in the lease, to drill the well to the Hunton lime to be encountered at approximately 4,100 feet. It was agreed that plaintiffs bear all expense incident to the undertaking, and that upon reaching said lime defendants would pay to plaintiffs the sum of $5,000, and further, if said lime was found to be of a quality indicating commercial productivity, the defendants would then pay to plaintiffs one-half the expense incurred by them in completing the well to the lime. It was further agreed that if the well was completed as a commercial producer, it should be operated by plaintiffs under a suitable contract to be entered into, and that the costs of operation would. be borne equally by the parties.

The contract was carried out by both parties to the point where the Hunton lime was reached and the $5,000 paid to the plaintiffs. The well proved to be a commercial producer, and its production was prorated by state authorities. Subsequently said well was shut down on order of said authorities for overproduction to await further order.

After 30 days the well was reopened and was found to be making salt water along with the oil. Thereupon plaintiffs set a string of two-inch tubing in the well to facilitate production, but the operation was unsuccessful. They then allowed the well to produce through the annular space between the tubing and the casing.

In an attempt to improve the method of production plaintiffs removed the derrick theretofore used in drilling and replaced it with a smaller one, whereupon they ran a cement plug to shut off production in order to perforate the casing at a higher level in the formation and thus avoid the intrusion of salt water. This did not improve the situation. Salt water continued to break into the well. Plaintiffs then undertook to shut off the water by injecting a large quantity of wet cement through the two-inch production pipe by means of air pressure. As a result of the air pressure the tubing was blown from the well, but immediately fell back in. An attempt was made to pull the tubing, and as a result the derrick collapsed, and the undertaking failed. Plaintiffs then proceeded to whipstock the hole but failed to obtain production, and the well no ■ longer produced. Defendants refused to pay plaintiffs for any portion of the drilling and operating expenses, and this action resulted.

In their answer and cross-petition defendants alleged that the tubing when first placed in the well had become plugged as a result of improper methods negligently employed by plaintiffs in placing the same in the well; that they requested plaintiffs to pull the tubing and reset it but plaintiffs refused to comply, and thereafter, over defendants’ protest, continued to allow the well to produce through the space between the tubing and the casing; that such method was improper and negligent in that the salt water was in no way controlled thereby, but was permitted to encroach the more upon the oil, eventually resulting in the total destruction of the well; that said acts constituted negligence on plaintiffs’ part and were the principal factors leading to the destruction of the well.

Defendants further alleged that plaintiffs were guilty of negligence in removing the larger derrick and replacing it with the smaller one for the reason that the latter was unsuited by reason of insufficient strength to the tasks necessary to the protection of the well from salt water; that said derrick was improperly set on the foundation in that it was wholly' out of plumb with the well, and as a result the same collapsed as aforesaid when the attempt was made *383 to pull the tubing; that such procedure was over defendants’ protest, and was wholly out of line with the usual custom and practice prevailing in the Mid-Continent field.

It was further alleged that plaintiffs were guilty of negligence in applying too much air pressure in running the cement into the well through the two-inch tubing as mentioned above; that the tubing and equipment were inadequate to withstand more than 1,800 pounds to the square inch, but plaintiffs, over defendants’ protest, increased the pressure to 2,100 pounds, as a result of which the tubing was blown from the well.

Plaintiffs were further charged with negligence in not proceeding immediately to pull the tubing after it fell back into the well in that the delay allowed it to become imbedded in the cement, which was then green but later became set, making the task all the more hazardous; that such delay was contrary to customary practice in the oil field.

It is further alleged that the well was destroyed as a proximate result of plaintiffs’ improper and negligent operations as aforesaid; that it would have been a profitable producer had it been properly handled, and that defendants’ interest therein would have been easily worth the sum of $60,000. Judgment was sought in that amount.

The first contention is that the trial court erred in overruling defendants’ motion to require plaintiffs to make their petition more definite and certain.

Plaintiffs pleaded the written contract and fulfillment thereof on their part, and alleged that they submitted monthly statements to defendants throughout operations reflecting their pro rata share of the expenses, a list of which was attached to the petition, and that the defendants were indebted to them under the contract for the sum of the said monthly statements, or $20,717.87.

Defendants say there is nothing in the statement to inform them as to what they are being charged with, whether for labor or material, or as to who furnished the same. They insist that the account as attached to the petition was wholly insufficient to apprise them of the real matters which they were required to defend against.

The statement attached to the petition consisted only of a column of dates with a sum set opposite each date. There was no itemized statement of what the sums represented. This, say the defendants, was not sufficient as against their motion and that the overruling of the same was prejudicial to their rights, and an abuse of the court’s discretion. Swarts v. State, 70 Okla. 205, 174 P. 255. That action was against a court clerk and his surety to recover alleged shortages in his official accounts. The trial court overruled the separate motions of defendants to require plaintiff to set out specifically the different items and their source making up the alleged shortage. Judgment against defendants was reversed on the ground that the trial court erred in overruling the motions.

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Cite This Page — Counsel Stack

Bluebook (online)
1942 OK 337, 130 P.2d 95, 191 Okla. 381, 1942 Okla. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-arrow-drilling-co-okla-1942.